IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v37y2005i21p2469-2485.html
   My bibliography  Save this article

Tanzanian formal sector workers' participation in informal production

Author

Listed:
  • Theis Theisen

Abstract

A theoretical model is developed explaining formal sector workers participation in the informal sector. A reduced-form informal sector participation function is derived from a specific utility function, a specific informal sector production function, and a specific informal sector earnings function. The participation function can be estimated consistently, and provides a solution to the problem that informal sector 'wages' in developing countries are hard to observe. A sample of Tanzanian formal sector workers is used to estimate the participation function. A majority of Tanzanian formal sector workers participate in informal production. Participation in informal production is inversely related to household income, to living in Dar es Salaam, and to being a mother with small children. Participation is positively related to age, and multiple-job-holding seems to play a very different role in the transition from work to retirement in Tanzania compared to industrialized countries.

Suggested Citation

  • Theis Theisen, 2005. "Tanzanian formal sector workers' participation in informal production," Applied Economics, Taylor & Francis Journals, vol. 37(21), pages 2469-2485.
    • Handle: RePEc:taf:applec:v:37:y:2005:i:21:p:2469-2485
    DOI: 10.1080/00036840500366197
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840500366197
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036840500366197?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Fields, Gary S., 1975. "Rural-urban migration, urban unemployment and underemployment, and job-search activity in LDCs," Journal of Development Economics, Elsevier, vol. 2(2), pages 165-187, June.
    2. Feige, Edgar L., 1990. "Defining and estimating underground and informal economies: The new institutional economics approach," World Development, Elsevier, vol. 18(7), pages 989-1002, July.
    3. Sukti Dasgupta, 2003. "Structural and Behavioural Characteristics of Informal Service Employment: Evidence from a Survey in New Delhi," Journal of Development Studies, Taylor & Francis Journals, vol. 39(3), pages 51-80.
    4. Andrew Oswald & Ian Walker, 1993. "Labour supply, contract theory and unions," IFS Working Papers W93/21, Institute for Fiscal Studies.
    5. Pradhan, Menno & van Soest, Arthur, 1995. "Formal and informal sector employment in urban areas of Bolivia," Labour Economics, Elsevier, vol. 2(3), pages 275-297, September.
    6. Smith Conway, Karen & Kimmel, Jean, 1998. "Male labor supply estimates and the decision to moonlight," Labour Economics, Elsevier, vol. 5(2), pages 135-166, June.
    7. Gindling, T H, 1991. "Labor Market Segmentation and the Determination of Wages in the Public, Private-Formal, and Informal Sectors in San Jose, Costa Rica," Economic Development and Cultural Change, University of Chicago Press, vol. 39(3), pages 584-605, April.
    8. Shishko, Robert & Rostker, Bernard, 1976. "The Economics of Multiple Job Holding," American Economic Review, American Economic Association, vol. 66(3), pages 298-308, June.
    9. Moffitt, Robert, 1982. "The Tobit Model, Hours of Work and Institutional Constraints," The Review of Economics and Statistics, MIT Press, vol. 64(3), pages 510-515, August.
    10. Susan Averett, 2001. "Moonlighting: multiple motives and gender differences," Applied Economics, Taylor & Francis Journals, vol. 33(11), pages 1391-1410.
    11. Moffitt, Robert, 1984. "The Estimation of a Joint Wage-Hours Labor Supply Model," Journal of Labor Economics, University of Chicago Press, vol. 2(4), pages 550-566, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Joonmo Cho & Donghun Cho, 2011. "Gender difference of the informal sector wage gap: a longitudinal analysis for the Korean labor market," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 16(4), pages 612-629.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ada Ferrer-i-Carbonell & Klarita Gërxhani, 2011. "Financial Satisfaction and (in)formal Sector in a Transition Country," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 102(2), pages 315-331, June.
    2. Sum Lo Simon Ming, 2023. "Desired work-leisure balance in a partial equilibrium job search model with multiple job holding," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-43, December.
    3. Paula Herrera-Id�rraga & Enrique L�pez-Bazo & Elisabet Motell�n, 2015. "Double Penalty in Returns to Education: Informality and Educational Mismatch in the Colombian Labour Market," Journal of Development Studies, Taylor & Francis Journals, vol. 51(12), pages 1683-1701, December.
    4. Alexander Muravyev, 2007. "Firm Size, Wages and Unobserved Skills: Evidence from Dual Job Holdings in the UK," Discussion Papers of DIW Berlin 681, DIW Berlin, German Institute for Economic Research.
    5. Aysit Tansel & Elif Oznur Acar, 2016. "The Formal/Informal Employment Earnings Gap: Evidence from Turkey," Research on Economic Inequality, in: Inequality after the 20th Century: Papers from the Sixth ECINEQ Meeting, volume 24, pages 121-154, Emerald Group Publishing Limited.
    6. Priscila Casari, 2010. "Labor Supply in Brazil: an Analysis of the Second Job in the Urban and Rural Areas," Working papers - Textos para Discussao do Curso de Ciencias Economicas da UFG 019, Curso de Ciencias Economicas da Universidade Federal de Goias - FACE.
    7. Helen Robinson & Jonathan Wadsworth, 2007. "Impact Of The Minimum Wage On The Incidence Of Second Job Holding In Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 54(4), pages 553-574, September.
    8. Alison Preston & Robert E. Wright, 2020. "Exploring the gender difference in multiple job holding," Industrial Relations Journal, Wiley Blackwell, vol. 51(4), pages 301-328, July.
    9. Ilias Livanos & Alexandros Zangelidis, 2012. "Multiple Job-holding among Male Workers in Greece," Regional Studies, Taylor & Francis Journals, vol. 46(1), pages 119-135, March.
    10. Takao FUKUCHI, 1998. "A Simulation Analysis Of The Urban Informal Sector," The Developing Economies, Institute of Developing Economies, vol. 36(3), pages 225-256, September.
    11. Socha, Karolina Z. & Bech, Mickael, 2011. "Physician dual practice: A review of literature," Health Policy, Elsevier, vol. 102(1), pages 1-7, September.
    12. Chung Choe & Ronald L. Oaxaca & Francesco Renna, 2018. "Constrained vs unconstrained labor supply: the economics of dual job holding," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(4), pages 1279-1319, October.
    13. Meriem Hodge Doucette & W. David Bradford, 2019. "Dual Job Holding and the Gig Economy: Allocation of Effort across Primary and Gig Jobs," Southern Economic Journal, John Wiley & Sons, vol. 85(4), pages 1217-1242, April.
    14. Menno Pradhan & Arthur Van Soest, 1997. "Household Labor Supply In Urban Areas Of Bolivia," The Review of Economics and Statistics, MIT Press, vol. 79(2), pages 300-310, May.
    15. Selwaness, Irene, 2020. "Reforms and Employment in The Egyptian Labor Market: Evolution by Age From 1988 to 2006," GLO Discussion Paper Series 455, Global Labor Organization (GLO).
    16. Georgios A. Panos & Konstantinos Pouliakas & Alexandros Zangelidis, 2014. "Multiple Job Holding, Skill Diversification, and Mobility," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 53(2), pages 223-272, April.
    17. Gregory Gilpin, 2020. "Policy‐Induced School Calendar Changes and Teacher Moonlighting," Southern Economic Journal, John Wiley & Sons, vol. 86(3), pages 989-1018, January.
    18. Heineck, Guido & Schwarze, Johannes, 2004. "Fly Me to the Moon: The Determinants of Secondary Jobholding in Germany and the UK," IZA Discussion Papers 1358, Institute of Labor Economics (IZA).
    19. Socha, Karolina, 2010. "Physician dual practice and the public health care provision. Review of the literature," DaCHE discussion papers 2010:4, University of Southern Denmark, Dache - Danish Centre for Health Economics.
    20. Etienne Lalé, 2019. "Search and Multiple Jobholding," Upjohn Working Papers 19-305, W.E. Upjohn Institute for Employment Research.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:37:y:2005:i:21:p:2469-2485. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.